China: Tsingtao Brewery expects double-digit growth before Olympic Games
Tsingtao Brewery Co. Ltd, the country's largest beer maker, hopes next year's Beijing Olympic Games will spur sales on top of expected double-digit growth this year, its president said, according to Reuters, March 7.
Tsingtao, which is 27 percent-owned by top U.S. brewer Anheuser-Busch Cos. Inc., is one of the third-tier sponsors of the 2008 Olympics. The Beijing games are expected to attract 4.8 million tourists to China's capital.
"The game is an exciting event, when people are excited, they only think of drinking beer," said Jin Zhiguo, president of China's oldest brewery. Tsingtao was established a century ago in the port city of Qingdao, which will host the sailing events. “The games provide us a good opportunity to promote sales, and even better, a chance to promote our brand," he told reporters on the sidelines of the annual parliament congress.
Jin declined to estimate how much growth the event could bring for the company.
Tsingtao expects profit growth in the double-digits this year, despite higher costs for power and grains.
The company posted a 22.5 percent rise in first-half net profit in 2006. Its full-year results will be announced in a few weeks.
"There is not much room for us to raise prices because of fierce competition in the industry, but we will try to control costs with strict management," Jin said.
Tsingtao is competing against rivals such as Beijing-based Yanjing Beer Group, also an Olympic sponsor, which expects its sales to grow by 13 percent this year.
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